China: No Dough For US Banks - NBC Chicago

China: No Dough For US Banks



    China:  No Dough For US Banks
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    NEW YORK - SEPTEMBER 19: Lower Manhattan and the Financial District are seen from Brooklyn at sunset September 19, 2008 in the Brooklyn borough of New York City. Wall Street ended a tumultuous week up over 350 points following the federal government's bailout plan. (Photo by Mario Tama/Getty Images)

    BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

    The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

    "The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.

    A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)